Tesla reports unexpected delivery increase in the third quarter

Thanks to favorable financing offers, attractive leasing deals, price reductions, and free charging, Tesla saw an increase in global deliveries in the third quarter—the first rise this year. The Austin, Texas-based company announced on Wednesday that it delivered 462,890 vehicles between July and September. This figure was supported by favorable loans starting at 1.99% and monthly lease rates of $299 for the cheapest model, the Model 3. In the same period last year, Tesla delivered 435,059 vehicles. The numbers slightly exceeded analysts' estimates of 462,000 vehicles for this period, according to data provider FactSet. Nevertheless, Tesla's shares fell sharply before the market opened, dropping by over 4%. This year, Tesla has faced difficulties selling its now aging models as the growth of electric vehicle sales in the US and Europe slowed due to concerns about range, price, and charging options. The decline in sales earlier this year led to previously unimaginable discounts, reducing the company's industry-leading profit margins. Analysts estimate that the average selling price of a Tesla vehicle in the third quarter was $42,500, the lowest in four years. The decline in sales numbers is likely to impact third-quarter earnings, which will be announced on October 23. Tesla is under increasing competitive pressure from both traditional and new car manufacturers attempting to capture the company's market share. Almost all of Tesla's sales came from the smaller and more affordable Model 3 and Model Y, while the company sold only 22,915 of its more expensive models, including the X, S, and the new Cybertruck. Wedbush analyst Dan Ives wrote in a note to investors on Tuesday that the third-quarter sales figures could bring momentum, as sales in China continue to rise and price and demand stabilize. "With China continuing to show high demand for Tesla, coupled with favorable leasing and financing conditions and untapped demand in the region, we are confident that we will see significant growth there," Ives wrote. For Europe, Ives expects a slow development due to macroeconomic pressures, while demand in the US should stabilize. However, BNP Paribas Exane expressed concerns in an investor note that the market's long-term expectations for Tesla might be somewhat high. The firm stated that its sales estimates for 2026 and 2027 are "10% to 15% below market expectations." Next week, Tesla plans to unveil a specially designed robotaxi at an event.